Broker Expertise: The Top Reason 88% of Businesses Collaborate | Insights from the 2025 Vero SME Insurance Index | National Insurance Brokers Association of Australia

March 11, 2025

For the past 14 years, the Vero SME Insurance Index has been tracking the insurance purchasing habits of Australian businesses, providing insights into the evolving role of brokers in the changing insurance landscape.

Vero SME Index Results 2025

Here the top insights for 2025:

Working with Brokers: A growing number of businesses are purchasing insurance through a combination of channels, with only 10% relying on brokers (a 27% decline compared to 2018), while more basic insurance products are increasingly bought directly. However, clients are placing greater value on brokers’ expertise, with 88% identifying it as the primary reason for engaging with a broker.

Broker Satisfaction: This figure dropped in 2025, with only 69% of businesses expressing satisfaction compared to 87% in 2024. Dissatisfaction is particularly prevalent among smaller businesses facing challenges, as they interact less with their brokers. These businesses could benefit from additional focus and support from brokers during difficult times.

Lack of formal Risk Management: A significant 90% of businesses report lacking a formal risk management process, and only 2% have a documented strategy with continuous control audits. While the size of a business can influence the sophistication of its risk management, even larger companies may lack a comprehensive approach. This creates an opportunity for brokers to guide clients in adopting a more structured risk management plan, ensuring that even larger businesses implement effective processes.

Increased Risk with New Technologies: As businesses integrate emerging technologies like lithium-ion batteries, electric vehicles, and solar panels with battery storage, few are discussing the risks with their brokers. In fact, 57% are unclear whether they use these technologies at all. As energy solutions evolve, brokers have a unique opportunity to offer valuable risk insights by educating businesses about the potential hazards. A proactive approach may be crucial, as many businesses may not yet recognize the need for insurance-related advice.

Lack of AI Frameworks: Only 18% of businesses have a comprehensive AI framework in place. As AI adoption grows, brokers can demonstrate their expertise by offering proactive advice and reminding clients of the insurance considerations and the importance of having a robust AI framework.